Asset finance questions, answered properly.

Asset finance lets a business use equipment now and pay for it over an agreed term instead of buying it outright. A funder pays the supplier, you take delivery, and you repay monthly or quarterly over a period that usually runs from two to ten years depending on the asset. At the end of a hire purchase agreement you own the asset. On a lease you either return it, extend, or agree a purchase, depending on the structure.

Hire purchase is a route to ownership. You pay a deposit, repay the balance plus interest, and title passes to you at the end, which usually suits businesses that want the capital allowances and long term ownership of energy assets. A finance lease keeps title with the funder and can be lighter on the initial cash outlay, with rentals treated differently for tax. Which one is right depends on your tax position and how long you expect to run the asset, so it is worth checking with your accountant before signing.

Deposits vary by asset, term and the strength of the business. Well supported deals on established equipment can be arranged on a VAT only deposit, while newer technology or younger businesses often need a larger contribution. We tell you where a deal is likely to land before you spend time on paperwork.

Yes. Solar and storage are usually funded as one project rather than two agreements, which normally gives a cleaner structure and a single set of repayments. It also means the installation, inverters, switchgear, protection and civils sit inside the same facility rather than being paid for separately out of working capital.

Often, yes. On energy projects the hardware is rarely the whole cost, so we look to fund enabling works such as switchgear, protection, trenching, mounting systems and commissioning alongside the main asset. Funders take a view on the soft cost proportion, which is one of the reasons the scope of works matters when we put a case together.

For straightforward cases with clean accounts, an indicative decision usually comes back within one working day, and full documentation typically follows within a few days once we have the supporting information. Larger or staged projects take longer because the funder is reading a project, not just an invoice.

No. GRID is a commercial finance broker. We work in partnership with Venture Finance and place deals through their lending panel, so you get access to funders who understand energy assets rather than a single in-house credit policy. All finance is subject to status, funder criteria and credit approval.

Sometimes. Newer businesses face tighter criteria and usually need a larger deposit, director support or a clearly evidenced contract behind the asset. It is not automatic, and we will tell you early if the case is unlikely to fly rather than run you through a process that ends in a decline.

Yes. Battery energy storage is fundable as an asset, normally on hire purchase or lease over a term set against the life of the system and the savings it produces. We fund the full scope where possible, including the cabinet, inverters, transformers, protection, controls and installation works, rather than the hardware line alone.

The usual structure is a deposit, then fixed monthly or quarterly repayments across a term of five to ten years. Where the project is phased, drawdowns can be staged so money moves as the installation moves. The aim is a monthly cost that sits below the demand charges, capacity charges and imported units that the battery removes.

Cost depends on power rating in kW, storage capacity in kWh, the switchgear and protection required, and how much civil work the site needs. Two systems with the same headline kWh figure can differ substantially once the connection works are priced. We look at the quoted scope before talking about monthly figures so the numbers reflect the real project.

It does not have to, but the strongest cases are the ones where it broadly does. When we model against your half hourly data, capacity charges and load profile, we can show a funder an operating case rather than an equipment invoice, and that usually improves both the appetite and the terms.

Yes, and it is common. Storage and generation are stronger together because the battery firms the solar output and shifts it into the hours the site actually needs it. Funding both in one facility keeps the paperwork and the repayment profile simple.

That is a normal part of energy projects and it needs planning for rather than ignoring. We structure drawdowns around DNO timelines so equipment is not being repaid while it sits waiting for energisation.

Yes. Rooftop and ground mount commercial solar is funded as an asset, typically over five to ten years, with the panels, mounting, inverters, protection and installation included in the facility. Ownership routes such as hire purchase suit businesses that want the asset and the allowances at the end of the term.

The monthly figure depends on system size, total installed cost, deposit and term. The more useful comparison is the monthly repayment against the electricity cost the array removes, because a well sized system on a high daytime load site often sits close to cost neutral. Our repayment calculator gives an indicative figure, but it is an illustration and not a quotation.

Self consumption, in almost every case. Filling a roof looks impressive but exporting cheaply is a much weaker return than displacing units you currently import. We read the half hourly consumption data before we look at the array size.

Yes. Most commercial installs run on deposit, delivery and commissioning stages, and funding can be drawn to match. That keeps working capital in the business through the build.

It can be, but the lease term and the landlord position matter. Funders want the asset to be secure for the length of the agreement, so a short remaining lease or an unwilling landlord will limit the options. It is worth raising this at the start rather than after a survey.

Yes, and it is the sensible way to do it. Vehicles and charging infrastructure are two halves of the same project, so funding them together avoids the common problem of vehicles arriving before the depot can charge them.

Vehicle terms usually run from three to five years, while the depot infrastructure behind them is often funded over a longer period because it lasts longer. We coordinate the two so the overall monthly cost tracks the fuel and maintenance saving.

Residual values on commercial EVs are still developing, and funders take a more conservative view than they do on diesel equivalents. That affects lease pricing, which is one reason ownership structures sometimes work out better on longer hold periods.

Yes. Phased rollouts are normal, and funding can be arranged across multiple drawdowns as vehicles and charging capacity are added rather than as one large commitment on day one.

It can. The chargepoints are often the smaller part of the bill once trenching, switchgear, ducting and a supply upgrade are priced, so we look to fund the installed scheme rather than the hardware alone.

Yes, though the structure needs to allow for utilisation building over time. We set terms with that ramp in mind instead of assuming day one throughput.

Frequently, yes, where it forms part of the installed scheme. Funders treat software differently to hardware, so it depends on the proportion and the supplier contract.

Yes. Hybrid battery and generator systems are well understood assets and are commonly funded on hire purchase over three to five years. Because they move between sites, funders look at utilisation across the fleet rather than a single contract.

It depends on how much you hire and how the sets are being run. Where generators are running long hours on low load, the fuel and servicing saving is usually the largest part of the case, and that is the number we build the funding around.

Yes. Funding multiple units together is usually cleaner than repeating the process each season, and it means the saving lands across the whole operation at once rather than in stages.

Often, yes, although it is harder than funding movable plant because the asset becomes part of the building. Funders who understand energy projects will look at HV works, switchgear and transformers where the business case and the covenant support it.

By evidencing what it unlocks. A substation upgrade that releases capacity for a new production line has a clear commercial case even though it does not generate income itself, and that case is what we put in front of a funder.

Yes. Multi stage engineering programmes are commonly funded as one structure with staged drawdowns, which is far simpler than arranging separate agreements per contractor.